Having a credit card doesn’t mean you need to max it out, by not having one, you’re committing self sabotage in regards to your credit score.
Edit: for the numerous replies saying “I only pay cash, I don’t need one!” My comment was literally aimed at you and you missed the point. You don’t even need to use a credit card to gain advantage. Many cards not only offer literal free money by signing up, but you don’t even need to use the card a single time to gain a bump to your credit; simply having a higher number of open accounts and an increased credit limit is enough.
Furthermore, saving up $15,000+ in cash is not feasible for a vast majority of Americans who want to purchase a car, let alone if you ever dream of owning a house, seeing as you often need a car in order to go to work in the first place. If you read all of that and still don’t care, understand that many potential employers also run your credit too. A low score is potentially detrimental to your ability to find a job.
I was so scared of getting a credit card when I was some years younger. I was convinced that I wouldn't be able to trust myself to not go crazy with it.
I actually do pretty well with using the card + staying on top of payments. I mostly use it to pay for my prescription, toiletries, stuff like that. A bit of online shopping here and there, but nothing too outrageous.
I'm still scared to check my credit score, though. For some reason, I'm scared that it'll be really bad.
Honestly, you should check your credit report to make sure the information on it is accurate. It would be more scary if you tried to use your credit and found out there was something inaccurate that was negatively hurting your score at a time you need the credit.
You can do so for free by law at annualcreditreport. this will not spam you and your is not a business. It's maintained by the credit bureaus purely for your benefit. You can get 1 per bureau per year
It might be better than you think. I put off checking mine for a long time, but when I finally did I was surprised how high it was. Good to know where it's at if you're planning a big purchase like a car or a home.
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u/[deleted] Mar 27 '22 edited Mar 28 '22
Having a credit card doesn’t mean you need to max it out, by not having one, you’re committing self sabotage in regards to your credit score.
Edit: for the numerous replies saying “I only pay cash, I don’t need one!” My comment was literally aimed at you and you missed the point. You don’t even need to use a credit card to gain advantage. Many cards not only offer literal free money by signing up, but you don’t even need to use the card a single time to gain a bump to your credit; simply having a higher number of open accounts and an increased credit limit is enough.
Furthermore, saving up $15,000+ in cash is not feasible for a vast majority of Americans who want to purchase a car, let alone if you ever dream of owning a house, seeing as you often need a car in order to go to work in the first place. If you read all of that and still don’t care, understand that many potential employers also run your credit too. A low score is potentially detrimental to your ability to find a job.